Omdia: TV chip costs rising to match panel prices

Rising costs for semiconductors and memory components are shifting the cost structure of television manufacturing. According to data from market research firm Omdia, the circuit boards used to manage picture and sound are becoming as expensive as the display panels themselves, particularly in smaller LCD models.

In the lower-end segment, such as 32-inch HD Smart TVs, the cost share of the mainboard has risen significantly from approximately 13% in the second quarter of 2025 to as much as 50% by the third quarter of 2026. For 55-inch UHD models, the board's share of component costs increased from 12% to 31% over the same period. In some instances, the cost of Wi-Fi modules has also surged, occasionally exceeding the cost of the cheapest 55-inch 4K panels.

The primary driver for this price hike is the massive demand for memory (DRAM and NAND flash) and processors from data centers and artificial intelligence (AI) giants. Because televisions compete for the same production capacity and components as AI systems, manufacturers face intense pressure on profit margins. This trend is expected to impact entry-level and Full HD models most heavily, potentially leading to price increases or hardware simplifications through 2027.